Southwest Gas wins regulatory ruling, posts higher profit

Friday, April 27, 2001 | 10:59 a.m.

Las Vegas-based Southwest Gas Corp., Southern Nevada's dominant natural gas utility, reported a 30.9 percent increase in earnings per share in the company's first quarter ending March 31.

Southwest, which has 1.4 million customers in Nevada, Arizona and California, reported net income of $33.8 million, $1.06 per share, on revenues of $487.5 million for the quarter. That compares with income of $25.2 million, 81 cents a share, on revenues of $296.8 million for the comparable quarter a year ago.

Southwest officials attributed the increase to a dramatic swing in the weather. Michael Maffie, president and chief executive officer, said temperatures were colder than normal for the quarter while the first quarter of 2000 included the warmest February in 10 years.

Southwest's stock was up 44 cents over Thursday's closing price to $21.14 in trading this morning.

In a separate matter, Southwest Gas learned today that the Public Utilities Commission of Nevada will not order an $8 million rate refund on fuel purchases passed through to consumers.

The PUC, meeting this morning, said Southwest could not have known at the time it constructed its gas portfolio that prices would skyrocket last June through September. The higher rates took effect Jan. 1, but the PUC staff said Southwest sought too much in its increase.